RJRGLEANER Communications Group (RJR)
Results for the six months ended September 30, 2017:
Revenues for the six months declined by 7% to $2.48 billion compared to $2.66 billion for the comparable period the prior year. The quarter also had a 7% decline to $1.26 billion (2015: $1.36 billion). “The Group’s results were impacted by the continued softness in spend from major advertisers in the financial, beverage, foods, telecommunications and retail sectors.”
Direct Expenses has declined by 5% to $1.23 billion relative to $1.3 billion for the same period in 2016. As a result, gross profit declined by 9% to $1.25 billion (2016: $1.37 billion) year to date.
The Company had a 5% decline in total operating expenses to $1.32 billion when compared to $1.39 million posted in the same period in 2016. This was mainly attributed to a 8% decline in the company’s Administrative expenses from $653.32 million in 2016 to $598.86 million. For the quarter, Total Expenses declined 9% from $722.02 million to $658.68 million.
Other income year-to-date has amounted to $57.67 million (2016: $193.80 million) representing a 70% decline. Once considered, an operating loss of $14.84 million was reported relative to an operating profit of $166.59 reported in 2016.
Finance costs had a 29% decline moving to $17 million (2016: $23.88 million) for the period.
As a result, Loss before tax amounted to $31.84 million relative to profit of $142.70 million reported in 2016. After considering tax of $3.31 million the company reported a net loss of $35.16 million for the period. For the quarter a profit of $12.14 million was reported.
The company reported a loss per share(LPS) of $0.01 relative to an EPS of $0.05 in September 2016. For the quarter the company reported earnings per share of $0.005 compared to 0.027 reported in 2016. The twelve-month trailing LPS totaled $ 0.0045. The number of shares used in our calculations is 2,422,487,654 units. Notably, RJR’s stock price closed trading on November 14, 2017 at $1.13.
Balance Sheet Highlights:
As at September 30, 2017, the Company reported total assets of $4.02 billion, an increase of $12.58 million when compared to $4.00 billion in the prior year.
Shareholders’ Equity as at September 30, 2017 was $2.52 billion compared to $2.50 billion for the prior year. This resulted in a book value per share of $1.04 compared to $1.03 a year ago.
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